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Cheapmanufacturing produces a single product nicknamed Cheap01. It uses the weighted average method of process costing. The following information relates to the second month of
Cheapmanufacturing produces a single product nicknamed Cheap01. It uses the weighted average method of process costing. The following information relates to the second month of its operations: - Started working on an additional 850 physical units during the month - Completed 800 physical units during the month - Had 100 work-in-progress units at the end of the previous period - The physical units in work in progress at the end of the month were 50% complete with respect to conversion costs. - 100% of the direct materials are added at the end of the process - Work in progress closing balance at the end of the prior month was $10,000 - Total manufacturing cost incurred during the month was $720,000 in direct materials and $77,500 in conversion costs. The total manufacturing cost incurred by the units of Cheap01 that are still incomplete at the end of the second month is closest to: $5,000 $6,500 $7,500 $13,500 Unable to be determined
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